Economic Impact Report 2 0 1 9 COVER: 1. Team Hopkins at the 2019 “Race to Embrace 5k” fundraiser for the Marian House to benefit homeless women. 2. Graduation exercises at the Johns Hopkins University Homewood campus. 3. Days of Taste brings together local chefs and elementary school students in a hands-on program about healthy eating. 4. Johns Hopkins University Gilman Hall on the Homewood campus. 5. Johns Hopkins Hospital nurses on the iconic Billings Dome in Baltimore. 6. Prosthetic limb developed at the Johns Hopkins University Applied Physics Laboratory. This report was prepared by Appleseed in partnership with the Johns Hopkins Office of Government and Community Affairs. Appleseed is a New York City-based consulting firm, founded in 1993, that provides economic research and analysis and economic development planning services to government, non-profit and corporate clients. 212.964.9711 www.appleseedinc.com Table of Contents 3 Executive Summary 29 Introduction 33 Part One: Johns Hopkins in Maryland and Beyond – An Overview 45 Part Two: Johns Hopkins Facts, Figures and Impacts Across Maryland, District of Columbia and Florida 83 Part Three: Educating Students and Cultivating Lifelong Learning 97 Part Four: Research the Drives Economic Growth 111 Part Five: Improving the Health of the Community 127 Part Six: Impacts Around the Globe 137 Part Seven: Fueling the Growth of Maryland’s Innovation Economy 155 Part Eight: Building Healthy Communities Together 183 Part Nine: The Impact of Affiliated Institutions 191 Part Ten: Johns Hopkins’ Future Economic and Community Impact 2 Executive Summary Johns Hopkins across Maryland, Johns Hopkins’ impact in Maryland, the District of Columbia and Florida District of Columbia and Florida • In fiscal year 2019, Johns Hopkins and its Nearly $13.9 billion in total economic affiliates directly and indirectly accounted 1 impact in 2019 ($12.6 billion in for more than 102,400 jobs in Maryland, Maryland) including 54,623 people employed directly by Johns Hopkins at its various Maryland locations with a payroll of nearly $4.4 Johns Hopkins is the largest private employer both billion. More than 85 percent of the 63,844 in Baltimore City and in the State of Maryland. It people directly employed by Johns Hopkins is also a major purchaser of goods and services, a systemwide – in Maryland, the District of sponsor of construction projects and a magnet for Columbia, Florida and elsewhere – worked in students and visitors. In keeping with the beliefs Maryland. of its founder and namesake, Johns Hopkins understands that its health and well-being are • In addition to its 54,623 regular full- and inextricably tied to the physical, social and part-time employees, Johns Hopkins employed economic well-being of the community. 9,970 students at its Maryland locations in a variety of part-time jobs. In fiscal year 2019, Johns Hopkins directly employed 63,844 non-student employees • In the spring of 2019, 53,310 regular full- and systemwide – in Maryland, the District of part-time Johns Hopkins employees (about 84 Columbia, Florida and elsewhere – and spent percent of all non-student employees) lived in more than $4.2 billion on purchases of goods and Maryland. services (including construction). • In fiscal year 2019, Johns Hopkins spent more than $1.3 billion on purchases of goods and services (including construction) from companies in Maryland, directly supporting 7,700 jobs in Maryland. 1. This figure excludes student employees. 3 • We estimate that spending in Maryland by • Beyond Maryland, in fiscal year 2019: Johns Hopkins students and visitors from out-of-state directly generated $261.5 million > Johns Hopkins directly employed 3,535 in economic output in Maryland in fiscal year people (excluding students) at its various 2019, and 2,246 jobs in Maryland. locations in D.C., with a payroll of $209.5 million; and through payments • Institutions affiliated with Johns Hopkins of approximately $88.9 million to directly employed 4,185 people in Maryland D.C. vendors and contractors, directly in the spring of 2017. Their spending on supported 397 additional jobs in D.C. purchasing and construction directly generated an additional 423 jobs in Maryland > Johns Hopkins directly employed 3,610 in fiscal year 2017. people at Johns Hopkins All Children’s Hospital and facilities in Florida, with a • Through the “multiplier effect,” spending payroll of nearly $285.1 million. Through by Johns Hopkins, its employees, vendors, payments of nearly $94.8 million to contractors, students, visitors and affiliated Florida vendors and contractors, Johns institutions indirectly generated more than Hopkins directly supported an additional $6.3 billion in economic output in fiscal year 695 jobs in Florida. 2019 and 33,227 jobs in Maryland. > Approximately $33.3 million in local • A significant share of the money Johns spending by Johns Hopkins students Hopkins spends on purchasing and enrolled at Johns Hopkins SAIS in construction is paid to minority- and women- Washington, D.C., visitors to patients at owned businesses. In fiscal year 2019, Johns Sibley Memorial Hospital and employees Hopkins spent $107.2 million on goods, who commute into D.C. directly supported services and construction work provided by 278 jobs in D.C. minority- and women-owned businesses, including nearly $39.4 million paid to vendors > Through the multiplier effect, spending and contractors in Maryland. by Johns Hopkins, its employees, vendors, contractors, students and visitors • Johns Hopkins withheld nearly $282.4 million indirectly generated 733 jobs and $159.0 in Maryland State income taxes from the million in economic output in D.C., and earnings of its employees in fiscal year 2019 2,527 jobs and $416.1 million in economic and paid nearly $23.3 million in taxes and fees output in Florida. to local governments in Maryland. This does not include usage fees such as the $6.6 million in fees paid for water and sewer service. 4 Summary Executive Executive • Combining all these impacts, we estimate that in fiscal year 2019, spending by Johns Hopkins, its employees, vendors, contractors, students and affiliates in Maryland, D.C. and Florida directly and indirectly accounted for: > 114,179 jobs in Maryland, D.C. and Florida, with wages and salaries totaling $7.7 billion > Nearly $13.9 billion in economic output in Maryland, D.C. and Florida Impact of Johns Hopkins, students, visitors and affiliates in Maryland, D.C. and Florida, FY 2019 (earnings and output in $ millions) Direct spending impact Indirect/ Total impact Employment/ Purchasing/ induced effects Payroll Construction Maryland Jobs 58,808 10,369 33,227 102,404 Wages $4,637.2 $586.5 $1,759.0 $6,982.7 Output $4,637.2 $1,663.9 $6,300.5 $12,601.7 District of Columbia Jobs 3,535 675 733 4,943 Wages $209.5 $53.7 $57.9 $321.1 Output $209.5 $122.2 $159.0 $490.7 Florida Jobs 3,610 695 2,527 6,832 Wages $285.1 $36.3 $111.6 $433.0 Output $285.1 $94.8 $416.1 $796.0 TOTAL Jobs 65,953 11,738 36,488 114,179 Wages $5,131.8 $676.4 $1,928.5 $7,736.8 Output $5,131.8 $1,880.9 $6,875.6 $13,888.3 5 Johns Hopkins’ impact in Baltimore • In fiscal year 2019, Johns Hopkins and its • We estimate that spending in Baltimore by affiliates directly and indirectly accounted for Johns Hopkins employees who commute into 60,710 jobs in Baltimore2 – a total equivalent the City, students and visitors from outside to about one out of every five private sector the City directly generated $391.0 million wage-and-salary jobs in the City. This total in economic output in the City in fiscal year included 40,564 people employed directly 2019, and 3,428 jobs. by Johns Hopkins at its various locations in Baltimore. More than 63 percent of the 63,844 • Institutions affiliated with Johns Hopkins people directly employed by Johns Hopkins directly employed 4,185 people in Baltimore in systemwide – in Maryland, the District of the spring of 2017. Their spending within the Columbia, Florida and elsewhere – worked in City on purchasing and construction directly Baltimore. generated an additional 257 jobs in Baltimore in fiscal year 2017. • In addition to its 40,564 regular full- and part- time employees in Baltimore, Johns Hopkins • Through the “multiplier effect,” spending by employed 9,733 students in a variety of part- Johns Hopkins, its affiliates, its employees, time jobs at its Baltimore locations. vendors and contractors, students and visitors, indirectly generated nearly $1.8 billion in • Of the 63,844 non-student employees who economic output in fiscal year 2019 and worked for Johns Hopkins in the spring of created 8,944 jobs in Baltimore. 2019 (both in Baltimore and elsewhere), 17,005 – about 27 percent of all non-student • Johns Hopkins paid nearly $17.2 million in employees – were residents of Baltimore. taxes and fees to the City in fiscal year 2019. This does not include usage fees such as the • Wages and salaries (excluding wages paid to $6.6 million paid for water and sewer usage. student employees) paid by Johns Hopkins to Baltimore residents in fiscal year 2019 totaled • In fiscal year 2019, Johns Hopkins withheld nearly $1.2 billion. nearly $282.4 million in state and local income taxes from the earnings of its employees. We • In fiscal year 2019, Johns Hopkins spent estimate that the local share of income taxes $600.6 million3 on purchases of goods and paid to Baltimore City from the earnings of services (including construction) from Johns Hopkins employees living in the City companies in Baltimore, directly supporting totaled approximately $20.7 million. approximately 3,332 jobs.